Hi neighbors,

As mentioned in yesterday's post Risk in Real Estate Investment, new investors need to be aware of the smallest mistakes when investing their money for the first time. Here's an additional list of common mistakes for new investors to avoid:

1) Failing to Have Adequate Insurance- Having investment property also means having liability. Some liability can include tenants, cars, parking lots, cleaning facilities, and property liability. New investors need to be certain that adequate insurance is taken out in order to protect their assets.

2) Inspect, Approve, and Confirm All Documents- Because investing in a property may require an ample amount of paper work such as building permits, zoning laws, rental and lease applications, health licenses, laundry leases, underlying loan documents, and etc, new investors may become overwhelmed or stressed out and may require help. Find a professional to assist with these documents.

3) Get a Bill of Sale For All Property Involved- Because personal property may be involved in an investment sale, make sure you are aware of who owns the property.

4) Charge Fair Rents- Remember, the goal is to keep your property filled. Because vacant property, lease terminators, or turnovers can be your greatest expense, always treat your tenants with respect.

5) Select Qualified, Good Tenants From the Start- It's important to take time and check references from previous landlords, employers, financial references, and etc. If you feel the need, you can also conduct an investigation. By taking the time to do this things in the beginning can prevent problems in the future.